Review:
Certificate Of Deposit (cd)
overall review score: 4.5
⭐⭐⭐⭐⭐
score is between 0 and 5
A certificate of deposit, commonly referred to as a CD, is a financial product offered by banks and credit unions that allows individuals to save money and earn interest over a fixed period of time.
Key Features
- Fixed interest rate
- Guaranteed return on investment
- Low risk
- Insured by the FDIC (up to $250,000)
Pros
- Low risk investment option
- Higher interest rates than traditional savings accounts
- Guaranteed return on investment
Cons
- Limited access to funds until maturity date
- Potential penalties for early withdrawal
- Interest rates may be lower than other investment options